Prepare a multiple-step income statement, Accounting Basics

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Prepare a Multiple-Step Income Statement based on the information presented in problem 4 above.                   

Answer :                                                               

                Lotu Wo Company                                          

                Multiple-Step Income Statement                                                            

                Particulars           Amount in mce_markernbsp;                     

                Net Sales             560,000                

                Less: Cost of goods sold                366,000                

                Gross Profit        194,000

                Operating expenses:                                     

                General and administrative expenses    12,000                  

                Selling expenses              18,000                  

                Operating income / Comprehensive income       164,000

                Other income / (expense)                                          

                Interest expense             2,000                    

                Interest revenue             600                        

                Net profit before tax      162,600                

                Less: Income tax expense            50,000                  

                Net profit after tax          112,600 

 


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